888 Exceeds Expectations in FY 2006
888 has released full year results, which show record earnings despite the cessation of its U.S.-facing operation, which accounted for 55 percent of its business. Pretax profits jumped 34 percent to $90.5 million from $67.4 million in 2005, while net gaming revenue rose 7 percent to $289 million against $271 million the previous year. The company said that, in Q1 2007, net gaming revenues have grown by 16 percent from Q4 2006, spurred in-part by the rollout of new products. "Given this start to 2007, the release of new products, our bingo acquisition and our clear business strategy, we are confident of delivering future growth in 2007," said 888 CEO Gigi Levy.
Click here to view a copy of 888's full year results.
Click here to view a copy of 888's Q1 2007 key performance indicators.
Click here to view a copy of 888's dividend declaration.
Betex Postpones Results
In a note to the London Stock Exchange, Betex, the Asia-facing lottery and gaming company, said it will postpone its full year results--scheduled for release on May 3--owing to uncertainty over the arrests of two senior executives. On April 18, the company reported that the detained individuals were being investigated by the Chinese police on allegations of "illegal conduct," and that the investigations did not extend into its other activities. The police have also restricted access to two Beijing Lottery Technology (BLT) accounts, as one of the detained executives was a legal representative for BLT, it said. The names of the detainees have not been released.
PartyGaming Issues Profit Warning
PartyGaming has warned that its underlying profits for 2007 will be well below current market forecasts due to higher-than-expected distribution costs. The news came on the release of its first quarter key performance indicators, which show a 26 percent jump in group revenue to $94.8 million during the three months ending March 31. The company said the rise in distribution costs was related to a 117 percent surge in player sign-ups for real-money gaming to 233,900, which was substantially ahead of expectations. "While the associated up-front cost of growing the player base using this route during the first half will impact the results for the full year, this investment in developing the group’s active player base is expected to result in higher growth in future years," it said.
Sportech Surprised, Disappointed with OFT Decision
The U.K. Office of Fair Trading (OFT) said on Thursday that it had decided to refer Sportech's acquisition of the Vernon Pools business to the Competition Commission, an independent public body that inquires into mergers and markets. In March, Sportech agreed to by the Vernons business from Ladbrokes for £50 million ($99.4 million). Sportech said it was "surprised and disappointed" at the OFT's decision, adding that it would now weigh its options. If the deal were to go ahead, Sportech would own 99 percent of the football pools industry. It is arguing that, despite the monopoly, the deal is the best way to ensure the future of an industry that has lost 90 per cent of its players and thousands of jobs since the introduction of the National Lottery in 1994.
Rank Group off to a Solid Start
Rank Group said it has made a "solid start" as a focused gaming business with like-for-like revenue up 3 percent for the first 16 weeks of the year. The London-listed operator said in an AGM statement that the rise in revenue, together with cost savings, has pushed its group profits higher in the year to date. The company also said its Blue Square interactive gaming and betting business saw a 40 percent jump in revenues during the period.
Lottomatica Releases Q1 2007 Results
Italy-based lotteries operator Lottomatica announced first quarter results. Highlights included revenue of 435.5 million ($589.1 million), including approximately 224.6 million euros ($304.1 million) from its GTECH operation. Overall, revenues grew 128.8 percent year-on-year, while revenue from Lottomatica's Italian operations grew 10.7 percent year-on-year.
Click here to view Lottomatica's Q1 results.